There has been a lot of hoopla regarding Spotify and its various competitors like the iTunes Store the last few years and it has been called “the future of music” and other exciting things. Well, it is not exciting in the way one might think.
Have a look at this chart titled “How Much Do Artists Earn Online?”. It is not a boring chart, like most charts, but a heartbreaking one.
Have a look here at an article on who owns Spotify. Hint: the market value of Spotify has not decreased since the article was written.
Also, did you think Grooveshark was a good thing? Not so much. From Digital Music News:
For further reading, see Robert Fripp’s online diary since ca mid-August of 2011.
In essence, it is business as usual with a slightly worse situation for artists. It is worth noting though that this mainly concerns indie/non-major-signed artists. Well – in theory… Universal Music Keeps Trying To Claim Zoe Keating’s Royalty Checks, Despite Having Nothing To Do With Her (Techdirt.com).
Update 19/11 2011! In a instance of not insignificant irony UMG is now also suing Grooveshark. In their material, one thing they point to is a comment in one of the articles on Digital Music News I have linked to above. The irony? King Crimson/Robert Fripp have been in an ongoing battle with UMG over rights infringements for several years now… The hilarity, and tragedy, is considerable.